Option to Purchase Paid-Up Additions (Opp Rider)

Transcription

1 Option to Purchase Paid-Up Additions (Opp Rider) Chubb Life

2 Option to Purchase Paid-Up Additions (Opp Rider) Our OPP rider not only provides you with extra protection, but also an opportunity to make your insurance policy more valuable. Plan Highlights Provides you with the contractual right to purchase additional paid-up life insurance which has guaranteed cash value and is eligible for dividends. The additional paid-up insurance provides you with protection on top of that provided by your basic insurance policy. The amount of paid-up insurance chosen by you in force at the time of the insured s death will become part of the life insurance proceeds. To meet your specific needs, an option under which the higher of (i) 101% of the premium paid for the paid-up insurance amount in force at the insured s death; or (ii) the guaranteed cash value, will be part of the life insurance proceeds. Premium payable in the first policy year to purchase additional paidup insurance can be up to 5 times 1 the amount of the standard basic premium of the policy. Minimum premium to purchase paidup insurance is just US$50. Cash value built up can be withdrawn 2 at anytime; it provides you with extra saving opportunity, but with insurance value. Benefits Additional paid-up insurance can increase your protection to meet your needs. Provides extra savings opportunity. Guaranteed cash value and accumulated dividends of the paidup insurance can provide a ready emergency fund for any purpose. 2

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4 Remarks: 1. In the 1 st policy year, the maximum amount of the premium you can pay for purchasing paid-up insurance is 5 times of the standard basic premium (which is the annual premium of the basic plan based on the standard class of risk excluding the policy fee). You may still purchase paid-up insurance from the 2 nd policy year and thereafter and the maximum premium payable at each year is 1 time of the standard basic premium. The total premium payable for all paid-up insurance purchased and to be purchased under this OPP rider and all other Option to Purchase Paid-Up Additions issued by Chubb Life Insurance Company Ltd. (the Company ) in respect of the same insured is subject to the maximum limit determined by the Company from time to time. The purchase must be made while this OPP rider is inforce and within 31 days of the date of issue of the policy or each policy anniversary. Otherwise, you may be required to provide evidence of insurability. Besides, if the premium for purchasing the paid-up insurance is received by us 31 days after the policy date or the policy anniversary, interest will be charged from the policy date or the policy anniversary to the date of submission of the premium at a rate determined by us from time to time. 2. Withdrawal of guaranteed cash value is subject to a withdrawal fee which is equal to the amount of guaranteed cash value withdrawn multiplied by the withdrawal fee percentage set out in the below schedule. Upon withdrawal of guaranteed cash value, the amount of paid-up insurance will be reduced accordingly. Year(s) from the initial purchase of paid-up insurance Amount of premium paid at the initial purchase of paid-up insurance Less than US$50,000 Greater than or equal to US$50,000 but less than US$500,000 Greater than or equal to US$500,000 Withdrawal within 1 st year 5% 5% 5% Withdrawal within 2 nd year - 4% 4% Withdrawal within 3 rd year - 3% 3% Withdrawal within 4 th year - - 2% Withdrawal within 5 th year - - 1% Withdrawal thereafter

5 U.S. Foreign Account Tax Compliance Act Under the U.S. Foreign Account Tax Compliance Act ( FATCA ), a foreign financial institution ( FFI ) is required to report to the U.S. Internal Revenue Service ( IRS ) certain information on U.S. persons that hold accounts with that FFI outside the U.S. and to obtain their consent to the FFI passing that information to the IRS. An FFI which does not sign or agree to comply with the requirements of an agreement with the IRS ( FFI Agreement ) in respect of FATCA and/or who is not otherwise exempt from doing so (referred to as a nonparticipating FFI ) will face a 30% withholding tax ( FATCA Withholding Tax ) on all withholdable payments (as defined under FATCA) derived from U.S. sources (initially including dividends, interest and certain derivative payments). The U.S. and Hong Kong have signed an inter-governmental agreement ( IGA ) to facilitate compliance by FFIs in Hong Kong with FATCA and which creates a framework for Hong Kong FFIs to rely on streamlined due diligence procedures to (i) identify U.S. indicia, (ii) seek consent for disclosure from its U.S. policyholders and (iii) report relevant tax information of those policyholders to the IRS. FATCA applies to Chubb Life Insurance Company Ltd. (the Company ) and this Product. The Company is a participating FFI. The Company is committed to complying with FATCA. To do so, the Company requires you to: (i) provide to the Company certain information and documentation including, as applicable, your U.S. identification details (e.g. name, address, the US federal taxpayer identifying numbers, etc); and (ii) consent to the Company reporting this information and documentation and your account information (such as account balances, interest and dividend income and withdrawals) to the IRS. If you fail to comply with these obligations (being a Non-Compliant Accountholder ), the Company is required to report aggregate information of account balances, payment amounts and number of nonconsenting US accounts to IRS. The Company could, in certain circumstances, be required to impose FATCA Withholding Tax on payments made to, or which it makes from, your policy. Currently the only circumstances in which the Company may be required to do so are: (i) if the Inland Revenue Department of Hong Kong fails to exchange information with the IRS under IGA (and the relevant tax information exchange agreement between Hong Kong and the U.S.), in which case the Company may be required to deduct and withhold FATCA Withholding Tax on withholdable payments made to your policy and remit this to the IRS; and (ii) if you are (or any other account holder is) a nonparticipating FFI, in which case the Company may be required to deduct and withhold FATCA Withholding Tax on withholdable payments made to your policy and remit this to the IRS. You should seek independent professional advice on the impact FATCA may have on you or your policy. 5

6 Contact Us Chubb Life Insurance Company Ltd. (Incorporated in Bermuda with Limited Liability) 33/F, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong Customer Service Hotline: life.chubb.com/hk This leaflet is intended as a general reference and does not form part of the policy. Please refer to the policy document for the exact terms and conditions. It is intended to be distributed in Hong Kong only and shall not be construed as an offer to sell or solicitation to buy or provision of any of our products outside Hong Kong. This leaflet is printed and distributed by Chubb Life Insurance Company Ltd. (Incorporated in Bermuda with Limited Liability) which is a Chubb Company Chubb. Coverages underwritten by one or more subsidiary companies. Not all coverages available in all jurisdictions. Chubb and its respective logos, and Chubb. Insured. SM are protected trademarks of Chubb. P13/EN/0516/HD/IC